Transamerica Cuts Fees on 26 Share Classes of Active Funds, Variable Annuities

By Bernice Napach

News August 31, 2020 at 05:05 PM

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Transamerica has reduced fees on 26 share classes of several actively managed mutual funds and variable annuity funds.

The fee reductions range from two to 20 basis points and are the second set of fee cuts for the year. They were effective as of Aug. 28 for some funds and Aug. 31 for others.

In a statement, the company said its "commitment to reassess fees is ongoing," but the latest fee cuts are timely given these "most turbulent times" in the market.

"By putting more of their money to work, these fee reductions can help fund shareholders better plan for the future," said Tom Wald, chief investment officer of Transamerica Asset Management, in a statement.

The latest fee cuts affect Transamerica Asset Allocation Portfolios; Inflation Opportunities Portfolios, which invest in inflation-protected securities; a government money market fund; and three variable annuity funds.

Reductions were announced for institutional share classes as well as share classes for individual shareholders and retirement accounts. A full list of the reductions can be found here.

The new expense ratios for the affected mutual funds range from a low of 0.62% for the retirement fund shares of the Transamerica Inflation Opportunities fund — after a nine basis-point cut — to 2.10% for the C shares of the Transamerica Asset Allocation Growth Portfolio, now 10 basis points lower.

The variable annuity fees now range from 0.56% for the initial fee for the Transamerica PineBridge Inflation Opportunities VP, down 9 basis points, to 1.09% for the service fee of the Transamerica Goldman Sachs 70/30 VP.

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